EIS supervisory board dismisses CEO Kati Kusmin
The supervisory board of the Estonian Business and Innovation Agency (EIS) decided during its meeting on Wednesday to dismiss CEO Kati Kusmin, who had been in the position for just over a year. According to the board, the anticipated changes within the agency have not progressed sufficiently quickly or substantively.
The EISA supervisory board, led by Deputy Secretary General of the Ministry of Economic Affairs Sandra Särav, removed CEO Kati Kusmin from her role, citing insufficient progress in analyzing impactful grants and reshaping the organization's public image. Särav stated that Kusmin was tasked at the start of her tenure with reviewing services, measuring their impact and focusing resources on areas of greatest market value, but these initiatives moved too slowly.
A critical area of concern was EIS' inability to adapt quickly to economic downturns and provide tailored support for export-focused businesses seeking new markets and partners. The council also criticized EIS' lack of clear communication about its purpose and services, which hindered its reputation among the public and entrepreneurs.
Outgoing CEO Kati Kusmin expressed disagreement with the supervisory board's assessment that the leadership failed to implement reforms quickly enough. While acknowledging the board's right to make such decisions, she stated that differing views are understandable.
Kusmin explained that a comprehensive analysis of EIS' activities was underway but not yet complete. She noted that no finalized proposals for reforms had been formalized, as it was a complex task.
Regarding criticism of EISA's public image, Kusmin disagreed, emphasizing that entrepreneurs who interacted with the agency generally gave positive feedback. She acknowledged that the public might not always understand EIS' work due to its complexity and broad scope, adding that balancing transparency with efficient resource use remains a challenge.
Over the past year, EIS reduced its workforce by 66 employees, about 12 percent of its total, a process Kusmin described as difficult but necessary.
Kusmin's tenure ends on January 20, with a severance package of three months' salary. Despite challenges, Kusmin believes significant steps have been made towards efficiency and competitiveness. EIS board members Sigrid Harjo and Aare Järvan will continue in their roles alongside the supervisory board led by Särav.
The Estonian Business and Innovation Agency (EIS) is a public sector organization with the goals of increasing Estonia's international competitiveness, developing entrepreneurship and improving the living environment, its website reads.
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Editor: Huko Aaspõllu, Karin Koppel, Marcus Turovski